Question

Read these two articles about the AT&T Time Warner merger. What do you see as the benefits and drawbacks of this merger for both consumers and the firms? Do you think it should be approved? Why or why not? In general, do you think monopolies are good or bad for consumers? Why?

The Perils of an AT&T-Time Warner Merger: Last time a communications giant acquired Time Warner, it was an unprecedented disaster. Here's what is likely to go wrong this time--for them, and us.

AT&T Is in Advanced Talks to Acquire Time Warner; Deal valuing Time Warner at more than $80 billion could happen as early as this weekend

Answer 1

The benefits and drawbacks that i see with this merger of AT & T and Time Warner fir both consumers and firmbare explained below:

Benefits of such merger:
Through such merger the company through will be able to give its customers , premium contents for their smartphones that they have always aspired. As the customers today have been demanding such features and content that will specifically be suitable for their mobile devices with respect to creation, formation and curation for better mobile experiences, the merger will let the company to attain this motive of being an awesome content creator.
Well with that merger , the AT & T will have the world's largest content creator by his side thus enabling the company to work out of box and break the boundaries by experimenting largely with the mobile videos and interactive programming.
The company now would be able to eradicate the prevailing complexities in decision making etc also resulting in right negotiations.

I believe with the merger of two , the company would now be able to capture more market share and will thus will have a wider reach.
For consumers now alternative choices would be available in addition to the existing choices in field of cable and paytv.

Efficiency in operations of Both the companies will enable it to attain economies of scale resulting in lower costs for the customers for services such as programming etc
More attractive and inexpensive offers willnnow be available to consumers

Drawbacks:
The merger of both will result in market dominance and even breed monopoly in that particular industry.
Restrictions on the distribution of the time warners content will or might create hurdles for the large number of customers who have brand loyalty tiwards Warner.
Restricting services of time warner will act against large population thus would have to collectively use the services now.

Through such merger , the direct or indirect competitors are likely going to be affected to a large extend.
With the merger with Time Warner, the AT &T will or can use bargaining power through programming offered by warner to attract the customers more towards itself which cannot be afforded by most its competitors. Thus the company can threaten the existence of many and will set different levels to be attained

Another drawback is the threat of privacy for consumers , as AT&T has no prevailing safety neasures to protect the data of public as now the services will lead to track users openely over platforms.

Another drawback is also the risk of charging higher prices in future , as customers will now have no option to shift

No i don't think the merger should be approved because more than its benefits for customers , it has dreadful drawbacks for them.
The most important drawback to be addressed before thinking about supporting the approval of the merger is the restrictions on the services provided by the Time Warner
Resyrictions on the distribution of the Time Warnets content will create a lot of problems for loyal customers and who largely rely on them.
The another most important thing to consider is the risk of monpoly , resulting in driving prices and reach , thus pushing those also who actually do notvwant to be a part of the combined services .

Moreover no assurance of privacy and no safeguarding policy is available currently, resulting in susceptibility of data threats through such an merger

Monopolies are bad for consumers because through monopoly market dominance is created. People now will not have not many alternatives and variety. , neither will they be able to switch to another , as most of the competitors will walk out because of losses or their communications services will be less efficient. The monopoly means , huge power is in the hands of the monopolistic giant , with respect to setting prices , or extend of services etc where there will be no scope for negotiations.

Hope i explained well

The view provided is my perspective , however you can modify it, if needed.

Good luck and God bless

Sorry for any typing mistakes.